In cryptocurrency, a Coin is a digital asset that operates on its own underlying blockchain.

It doesn’t run on the blockchain of other cryptocurrencies.

Bitcoin(BTC) is the best example of a coin.

It operates on the Bitcoin network.

Ether, another great example of a coin, is the native cryptocurrency of the Ethereum blockchain.

Coins are mainly used for payments or mediums of exchange or as a store of value within a specific network.

A token, on the other hand, is a digital asset that operates on a parent blockchain or on another digital asset’s blockchain, because it doesn’t have a blockchain of it’s own.

Ethereum is the most widely used parent blockchain, allowing users to create tokens on top of it.

If the Ethereum blockchain disappeared today, as the underlying platform, all of the tokens created and existing on top of it would also disappear.

ERC-20 tokens, also known simply as “ERC-20”, are a technical standard that is used to create all smart contracts on the Ethereum blockchain.

It outlines all of the rules that Ethereum tokens must adhere to, and it simplifies what developers have to do when trying to create and develop new projects.

It creates a standard expectation of how tokens will function within the Ethereum network.